The world of Cryptocurrencies is in the middle of a hurricane. Yesterday Tuesday it was reported that the Government of china banned the country’s financial institutions from providing digital currency services. After the announcement, the The total capitalization of cryptocurrencies fell by about 35% and the Bitcoin lost around 30% of its value, in one day!
It barely has it in mid-April Bitcoin (BTC) reached a historic high above that $ 64,000according to data from CoinMarketCap. In the weeks that followed, he entered a downward streak that was compounded on the night of May 16 when Elon Musk announced that Tesla would no longer accept payments in this cryptocurrency.
- You Might Be Interested: 4 Cryptocurrencies You Should Buy This Year
However, the big boost was given by the Chinese government on May 18. Yesterday he did Bitcoin The price was around $ 45,500, but after the ban was announced this Wednesday, May 19th fell to $ 31,663, according to CoinMarketCap. This means a approx. 30% depreciation in the last 24 hours and a total drop of 50.5% in the last month.
Bitcoin’s behavior from May 18-19, 2021. Image via CoinmarketCap.
- Also Read: Bitcoin and Ethereum Hit Wall Street as SP Global Indices
Not only Bitcoin was affected
In the past 24 hours, several cryptocurrencies have suffered from the effects of the Chinese ban. The same specialized portal registered losses on the Total capitalization of cryptocurrencies for more than $ 721,453 millionwhat translates into a 35% decline in the entire market.
Total market capitalization for cryptocurrencies from May 18-19, 2021. Image via CoinmarketCap.
The Ethereum (ETH), the second most capitalized digital currency, had an average price of $ 3,545 per unit until yesterday. This morning it only cost $ 2,014, which represents a Slightly more than 43% decrease.
For his part, Dogecoin (DOGE), the preferred cryptocurrency of Elon Muskit went from the calculation $ 0.5035to $ 0.2360, that is a 53.3% fall in its value.
At this time, 45 of the 50 most popular cryptocurrencies are in the red with a downward trend. However, both are Bitcoin As the ether They’re showing the first signs of recovery, even though they’re not solid enough to get the win.
- We recommend: The co-founder of Ethereum becomes the youngest billionaire in the world
Joe DiPasquale, CEO and founder of the BitBull mutual fund, stated that this was normal volatility for Bitcoin. The businessman pointed out that the cryptocurrency is “going through a phase of natural consolidation that we believe is necessary for the support lines to form for future appreciation,” he told the CoinDesk portal.